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Sukhjit Starch & Chemicals Ltd.

BSE: 524542 Sector: Others
NSE: N.A. ISIN Code: INE450E01011
BSE LIVE 15:40 | 20 Nov 363.45 5.70
(1.59%)
OPEN

360.10

HIGH

365.50

LOW

359.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 360.10
PREVIOUS CLOSE 357.75
VOLUME 785
52-Week high 433.45
52-Week low 240.00
P/E 16.09
Mkt Cap.(Rs cr) 268
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 360.10
CLOSE 357.75
VOLUME 785
52-Week high 433.45
52-Week low 240.00
P/E 16.09
Mkt Cap.(Rs cr) 268
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sukhjit Starch & Chemicals Ltd. (SUKHJITSTARCH) - Auditors Report

Company auditors report

To

The Members of

The Sukhjit Starch & Chemicals Limited Phagwara

REPORT ON THE STANDALONE FINANCIAL STATEMENTS :

We have audited the attached standalone financial statements of The Sukhjit Starch& Chemicals Limited (the Company) as at March 31 2017 which comprise the BalanceSheet the Statement of Profit and Loss the Cash Flow Statement and a summary ofsignificant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS :

The Company's Management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ('the Act') with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

AUDITOR'S RESPONSIBILITY :

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements. An audit involvesperforming procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

OPINION :

In our opinion and to the best of our information and according to explanations givento us the aforesaid standalone financial statements read together with significantaccounting policies and notes forming part of accounts give the information required bythe companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:

(i) In case of balance sheet of the state of the affairs of the company as at 31stMarch 2017.

(ii) In case of profit and loss Accounts of the profit of the company for the yearended on that date.

(iii) In the case of cash flow statement of the cash flow for the year ended on thatdate.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS :

1. As required by the companies (Auditor' s Report) order 2016 (' the order') issuedby the Central Government of India in terms of sub section (11) of section 143 of theCompanies Act 2013. We enclosed in Annexure A statement on the matters specified inparagraphs 3 & 4 of the said order.

2. As required by section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourspecific report in ' Annexure B' and

(g) With respect to the other matters to be included in the Auditor' s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in note to the financial statements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) The Company has provided requisite disclosure in its Standalone FinancialStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company (refer note no. 7 to the Standalone FinancialStatements).

FOR Y.K. SUD & COMPANY
CHARTERED ACCOUNTANTS
Sd/-
(Y.K. SUD)
Place : Jalandhar. B.Com. F.C.A.
Dated : 24th May 2017 Prop.
Memb. No. 16875

ANNEXURE A TO THE AUDITORS' REPORT :

The Annexure referred to in our Independent Auditors' Report to the members of TheSukhjit Starch & Chemicals

Limited on the standalone financial statements for the year ended 31st March 2017 wereport that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As per information given to us the physical verification of fixed assets has beendone by the management at reasonable intervals and no material discrepancies were noticedon such verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the bases of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The Company has conducted physical verification of stock of finished goods storesspare parts and raw materials at reasonable intervals. In our opinion the frequency ofverification is reasonable.

3. In our opinion and according to the information and explanation given to us theCompany has neither granted or taken any loans secured or unsecured to or from theCompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013 ('the Act').

(a) Paragraph 3(iii)(a) of the Order is not applicable to the Company in respect ofrate of Interest and other terms and conditions on which the loans had been granted to thebodies corporate listed in the register maintained under section 189 of the Act.

(b) Paragraph 3(iii)(b) of the Order is not applicable to the Company in respect ofrepayment of the principal amount.

(c) Paragraph 3(iii)(c) of the Order is not applicable to the Company in respect ofamount overdue in respect of the loans granted to the bodies corporate listed in theregister maintained under section 189 of the Act.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

5. In our opinion and according to the information and explanations given to us thecompany has complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under with regard to the deposits accepted from public.

6. The Central Government has prescribed the maintenance of accounts and cost recordsunder section 148(1) of the Act which has been duly complied by the Company.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed Statutory dues including Provident Fund Income TaxSales Tax Service Tax Duty of Customs Value Added Tax Cess and other materialStatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any dues on accountof employees' state insurance and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Service Tax Duty of CustomsValue Added Tax Cess and other material Statutory dues were in arrears as at 31 March2017 for a period of more than six months from the date they became payable.

(b) The Company has disputed liabilities ofRs. 28.62 crores (not provided in theaccounts) which mainly include Central Excise liability ofRs. 25.98 crores against saleof Maize Starch since 01.04.1997. The company has explained that the Excise department isalleging the clearance of Maize Starch as that of Modified Starch so it is totallybaseless and it does not foresee any liability to crystallize on this account. Other itemsconcern a demand ofRs. 1.31 crores raised on sale made through the consignment agents ofthe company which is pending before the Assistant Commissioner. The company does notforsee any liability on this score as there is no valid / legal ground for the demand.Rs.1.25 Crores wrongly levied for R&C measures by A.P. Northern Power DistributionCompany Ltd. Nizamabad against exemption enjoyed by the unit the matter is pendingbefore the Hon'ble High Court of Andhra Pradesh and other Misc. Service tax demands due todifference in opinion.

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government. The Company does not have any borrowings fromdebenture holders.

9. The term loans have been applied for the purpose for which they were obtained. TheCompany has not raised moneys by way of initial public offer or further public offer(including debt instruments).

10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.

13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

15. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence paragraph 3(xv) of the Order is notapplicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR Y.K. SUD & COMPANY
CHARTERED ACCOUNTANTS
Sd/-
(Y.K. SUD)
Place : Jalandhar B.Com. F.C.A.
Dated : 24th May 2017 Prop.
Memb. No. 16875

ANNEXURE B TO THE AUDITORS' REPORT :

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (''the Act'')

We have audited the interna! financial controls over financial reporting of The SukhjitStarch & Chemicals Limited (''the Company'') as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the 'Guidance Note') issued by the Institute of Chartered Accountants of India and theStandards on Auditing prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor' s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

FOR Y.K. SUD & COMPANY
CHARTERED ACCOUNTANTS
Sd/-
(Y.K. SUD)
Place : Jalandhar B.Com. F.C.A.
Dated : 24th May 2017 Prop.
Memb. No. 16875